1-Star Stocks Poised to Plunge: Best Buy?

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, electronics retailer Best Buy (NYS: BBY) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Best Buy's business and see what CAPS investors are saying about the stock right now.

Best Buyfacts

Headquarters (founded)

Richfield, Minn. (1966)

Market Cap

$7.4 billion

Industry

Computer and electronics retail

Trailing-12-Month Revenue

$50.7 billion

Management

Interim CEO George Mikan (since April 2012)CFO James Muehlbauer (since April 2008)

Return on Equity (average, past 3 years)

17.4%

Cash/Debt

$1.4 billion / $2.0 billion

Dividend Yield

3.1%

Competitors

Amazon.comAppleWal-Mart

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 22% of the 3,495 members who have rated Best Buy believe the stock will underperform the S&P 500 going forward.

A couple of months ago, one of those Fools, CoreAndExplore, succinctly summed up the bear case for our community: "May get a dead cat bounce at best, otherwise the slide will continue relatively unabated due to dwindling market share (thanks to Amazon, eBay, and other online retailers) and tightening margins. Some big box stores will survive as niche players [in my opinion], but large national chains like [Best Buy] are a thing of the past."

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Want to see how well (or not so well) the stocks in this series are performing? Follow theTrackPoisedToCAPS account.